6.1-378.2 - (Repealed effective October 1, 2010) Acquisition of control; application.
§ 6.1-378.2. (Repealed effective October 1, 2010) Acquisition of control;application.
A. Except as provided in this section, no person shall acquire directly orindirectly 25 percent or more of the voting shares of a corporation or 25percent or more of the ownership of any other entity licensed to conductbusiness under this chapter unless such person first:
1. Files an application with the Commission in such form as the Commissionmay prescribe from time to time;
2. Delivers such information as the Commission may require concerning thefinancial responsibility, background, experience, and activities of theapplicant, its directors, senior officers, principals and members, and of anyproposed new directors, senior officers, principals or members of thelicensee; and
3. Pays such application fee as the Commission may prescribe.
B. If any material information provided to the Commission in an applicationchanges during the investigation period, the applicant shall immediatelynotify the Commission.
C. Upon the filing and investigation of an application, the Commission shallpermit the applicant to acquire the interest in the licensee if it finds thatthe applicant, its members if applicable, its directors, senior officers andprincipals, and any proposed new directors, members, senior officers andprincipals have the financial responsibility, character, reputation,experience, and general fitness to warrant belief that the business will beoperated efficiently and fairly, in the public interest, and in accordancewith the law. The Commission shall grant or deny the application within 90days from the date a completed application accompanied by the required fee isfiled unless the period is extended by the Commission. If the application isdenied, the Commission shall notify the applicant of the denial and thereasons for the denial.
D. The provisions of this section shall not apply to the acquisition of aninterest in a licensee directly or indirectly by merger, consolidation, orotherwise, (i) by or with a person licensed under this chapter, (ii) by orwith a person affiliated through common ownership with the licensee, or (iii)by bequest, descent, survivorship or by operation of law. The personacquiring an interest in a licensee in a transaction which is exempt fromfiling an application by this subsection shall send written notice to theCommission of such acquisition within 30 days after its closing.
E. If any person acquires an ownership interest in a licensee withoutobtaining prior approval from the Commission as required by this section, theCommission may for good cause shown order such person to divest himself oritself of such ownership interest.
F. The Commission may not enter an order requiring divestiture pursuant tosubsection E until it has given the person 21 days' notice in writing of thereasons for the proposed divestiture and has given the person an opportunityto introduce evidence and be heard. The notice shall be sent by certifiedmail to such person and shall state with particularity the grounds for thecontemplated action. Within 14 days of mailing the notice, the person namedtherein may file with the Clerk of the Commission a written request for ahearing. If a hearing is requested, the Commission shall not requiredivestiture except based upon findings made at such hearing.
(1998, c. 10; 2009, c. 346.)